Truworths International. JSE: TRU

Background of Truworths

Truworths International is an investment holding company comprising fashion retail companies cumulatively forming one of the leading fashion retailers in South Africa, with over 730 stores across the country and around 50 stores in other African countries. Truworths’s history can be traced back to 1917 with the formation of the Alliance Trading Company. The company has since grown quickly through organic growth and moves to buy other businesses.

Today, the group’s retail chains include Truworths, Truworths Man, Identity, Earthaddict, Uzzi and YDE, along with specialised children’s clothing stores Earthchild and Naartjie. The Truworths Distribution Centre ensures that merchandise received from manufacturers is efficiently distributed to all stores for sale. Operations in South Africa and Africa are carried out through subsidiaries Truworths Limited. In December 2015, the group successfully followed through on a move to buy UK-based youth footwear retailer Office Holdings for a purchase price of R5.5 billion.

Truworthsshares are dual-listed on the Johannesburg Stock Exchange (JSE) and the Namibian Stock Exchange. The group has a JSE market cap of R34 billion.

Truworths Shares Growth Driver

Truworths has managed to deliver total shareholder return of 24% per annum since listing on the JSE, with capital worth R8.8 billion being returned in the form of dividends and share buy backs. The business seeks to create value by targeting the middle-income consumer market in South Africa, and continually diversifying of its portfolio.

In addition to rapidly expanding its local asset base, the decision to buy Office Holdings was a major move, comprising 159 stores and contributing to Truworths strategy of international diversification. In addition to this acquisition, more than R1.8 billion capital expenditure has been invested over the past five years, mainly in enhancing the store portfolio, improving the supply chain and upgrading IT systems for better efficiency. The group has also focused on integrating newly-acquired brands such as Earthchild, Earthaddict and Naartjie. Trading space for the year increased by 8.9% following the various acquisitions.

The group’s latest financial results, covering 2016, illustrated the challenging market conditions locally and abroad. Performance was dampened by new credit regulations, pressure on consumer spending and Rand volatility. In the UK, trade conditions were challenging due to an economic slowdown and uncertainty following the Brexit vote. Despite these challenges, Truworths managed to increase merchandise sales and record headline earnings of R2.8 billion, compared to R2.4 billion in 2015.

R547 million of capital expenditure has been earmarked for 2017, which will go towards opening new stores, expanding and refurbishing existing stores, improving distribution facilities and information systems, enhancing live online sales and investing in land and buildings.

Truworths Group Investor Tip

Truworth share price has been dampened by tough trading conditions, but the group’s expansion drive both locally and abroad has been successful. When economies improve and consumer demand increases, the forecast supports solid growth in the future. Truworths shares continue to be one of the JSE’s solid (if not exceptionally high-yielding) fashion stocks to buy.

Truworths Major Shareholders

Sector

Retailers

Industry

Retail

Sub industry

Soft Goods

How to buy Truworths Group Shares

Truworths : How to buy Truworths Group Shares Online

We have made it simple to buy JSE listed firm shares online. The easiest way to buy Truworths shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Truworths and assist you with the setup and management of your stock portfolio account.

Here are the steps you must follow to Buy / Truworths Group shares with utmost confidence:

Start by Filling in the BUY THIS SHARE form.

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Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.

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